Dear P&P,
I wish to share my personal take that the senior creditors will not fall for Utico's latest bait.
https://sg.news.yahoo.com/middle-ea...t-hyflux-submits-binding-offer-034531603.html
If you bother to read their new proposal, they still don't have money. The negligible amount of shares of the SPVs, Utico or New Hyflux has no value to speak of. The assets within, could be non-existence (transferred) except the piles of old debts. If I guess correctly, the proposed stakes given to you will be just an empty shell.
Don't trust them. They have no money and want a piece of the action.
1. There has been no creditor consultation.
2. A JM is accountable to the court and free from any agenda that the board of Hyflux may have.
3. Hyflux and its current and former directors are the subject of criminal investigations by the Singapore authorities, for suspected false and misleading statements and breaches of disclosure rules that may have taken place over a period of years.
4. There is every interest on the part of the board to protect itself to
make sure that claims don't commence against the board members. Hyflux has made this pre-condition clear in creditor meetings, despite strong resistance from the UWG. The board will certainly gravitate to options that give them that release, as opposed to what is valuable for creditors.
5. Potential investors' interest in Hyflux will not diminish if Hyflux is placed under JM.
6. While other investors, fronted by Unilegend Investments, Pison Investments and Aqua Munda have said that they will walk back their proposals if the board of Hyflux and founder Olivia Lum are removed, or if Hyflux is placed under JM, all these statements must be taken with a pinch of salt as their engagements with creditors are still in very nascent stages, Mr Ng said. He also noted that the invitation memorandums sent out by Pison and Aqua Munda to Hyflux's senior unsecured creditors to buy their debt at a discount are practically identical in appearance: "We have serious doubts about the bona fide (nature) of these parties... They (the Pison and Aqua Munda offers) are almost a copycat of each other." Other questions about who is funding Aqua Munda remain unanswered, Mr Ng added: "In January, Hogan Lovells, my instructing solicitors, wrote to (Hyflux chief executive)
Olivia Lum to ask if there was any involvement with Aqua Munda. Ms Lum brushed these queries aside by saying they are irrelevant... In July, (Hyflux) said that there is no agreement between Aqua Munda and Olivia Lum. So I would say that the original queries were never ever answered."
7. The chance of a successful Utico deal is nil, he said, since the UWG and an informal steering committee of Hyflux medium-term note holders who together represent 73 per cent of Hyflux's senior unsecured debt have said that
they will vote against the Utico deal.
8. Aqua Munda, meanwhile, has "made a song and dance about engaging with Sias", or the Securities Investors Association (Singapore), Mr Ng observed. But since Aqua Munda met Sias last month, there has been "radio silence" as to what it will offer PnP holders. Mr Ng asked:
"Are these genuine proposals or merely games to extend the restructuring for as long as possible?"
https://www.businesstimes.com.sg/co...ditors-to-file-for-hyflux-judicial-management
